MIRA INFORM REPORT

 

 

Report Date :           

20.03.2012

 

IDENTIFICATION DETAILS

 

Name :

KANGNAM CHEMICAL CO., LTD.

 

 

Registered Office :

1355-21, Seocho 2-dong, Seocho-gu, Seoul, Korea, 9th Fl., Gangnam Bldg., Zip Code 137-862

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

12.03.1971

 

 

Com. Reg. No.:

214-81-10843

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Synthetic Resin and Other Plastic Materials

 

 

No. of Employees :

284

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

South korea

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Basic

 

Company Name

KANGNAM CHEMICAL CO., LTD.

(Korean Company Name : “강남화성()”)

Registered Address

1355-21, Seocho 2-dong, Seocho-gu, Seoul, Korea

Building

9th Fl., Gangnam Bldg.

Zip Code

137-862

Tel

+82-2-3415-8000

Fax

+82-2-3473-3262

E-mail

kangnam@kangnam.co.kr

Website

www.kangnam.co.kr

Trading Address

9th Fl., Gangnam Bldg., 1355-21, Seocho 2-dong, Seocho-gu, Seoul, Korea

Tel

+82-2-3415-8000

Fax

+82-2-3473-3262

Other Address-Banwol Factory

609B-22, 626, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-599-8000

Fax

+82-31-492-2860

Other Address-Daegu Sales Office

1578, Sangyeok 2-dong, Buk-gu, Daegu, Korea

Tel

+82-53-383-6580

Fax

+82-53-383-6588

Other Address-Daejeon Sales Office

1682-7, Sinil-dong, Daedeok-gu, Daejeon, Korea

Tel

+82-42-934-7088

Fax

+82-42-934-7235

Other Address-Busan Sales Office

394-1, Deokpo 2-dong, Sasang-gu, Busan, Korea

Tel

+82-51-301-3871

Fax

+82-51-301-3876

Other Address-Gwangju Sales Office

989-3, Jangdeok-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-62-953-7930

Fax

+82-62-953-7929

Type

Export/Import

Industry

Manufacture of Synthetic Resin and Other Plastic Materials

  Main Business

Phenolic Resins, Polyurethane Resins, Acryl Resins, Silicone Balance, Painters Work

Established (mm/dd/yyyy)

03/12/1971

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Resins(13111000)

Sell

Polyurethane resins(13111061)

Sell

Compounds and mixtures(12350000)

Sell

Phenolic resin(13111002)

Sell

Polyamide(13111031)

Sell

Preservatives(12164501)

Sell

Polyurethane resins(13111061)

 

 

CEO’s

 

Name

Chung Ha-Yong

Address

Suite 304-403, 70-1, Geumgok-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

Date of Birth

09/28/1947

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,000,000,000

Employees

284

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

A Company of KUNSUL CHEMICAL INDUSTRIAL CO., LTD GROUP

Bank Details

Citibank, Korea

Shinhan Bank

Corporate Registered No.

110111-0101264

Business Registered No.

214-81-10843

Permit & Licenses

06/05/1984 KS Mark

08/18/1987 KS Mark

10/04/1995 ISO 9001 by LRQA KOREA

02/27/2006 ISO 14001 by LRQA KOREA

 

Int’l Trade No.: 538022

Shareholder Position

Name

Shares

%

DIC CO., LTD.(JAPAN)

700,000

50.00

KUNSUL CHEMICAL INDUSTRIAL CO., LTD.(180111-0003391)

578,115

41.30

HWANG SUNG-HO

121,885

8.70

TOTAL

1,400,000

100.00

Company History

03/12/1971 incorporated as the present name

10/12/1971 Registered as a Foreign Direct Investment Corporation


Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Co-President & CEO

Mr.

Chung Ha-Yong

Male

Korean

03/18/1992

Co-President & CEO

Mr.

Hukushi Hirotaka

Male

Japanese

11/28/2011

Director

Mr.

Mataki Takeshi

Male

Japanese

04/29/2011

Director

Mr.

Tamaki Tashihumi

Male

Japanese

03/26/2010

Director

Mr.

Hasumi Toshio

Male

Japanese

04/30/2007

Director

Mr.

Moon Kyung-Myung

Male

Korean

03/18/1992

Director

Mr.

Lee Eung-Il

Male

Korean

03/26/2004

Auditor

Mr.

Yamaki Kaiji

Male

Japanese

04/30/2008

Auditor

Mr.

Lee Sang-Goon

Male

Korean

03/22/2007

Supervisor

Mr.

Ahn Tae-Hak

Male

Korean

10/23/2006

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2010

193,049,102,357

129,413,143,059

8,678,465,571

2009

165,367,237,583

115,875,436,090

12,570,065,696

2008

182,669,222,525

113,491,497,579

5,555,479,425

2007

131,950,448,811

98,369,962,575

3,214,472,377

2006

120,351,294,438

83,383,615,957

6,109,935,705

2005

113,086,626,947

77,060,692,157

3,959,284,718

 

 

Financial Description

 

Authorized Capital(KRW)

12,500,000,000

Paid-Up Capital(KRW)

7,000,000,000

Total Issued Shares

1,400,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

129,413,143,059

115,875,436,090

113,491,497,579

Current Assets

81,781,615,021

74,480,514,480

70,655,651,559

-Quick Assets

56,208,040,114

49,806,008,402

50,164,146,684

-Inventories

25,573,574,907

24,674,506,078

20,491,504,875

Fixed Assets

47,631,528,038

41,394,921,610

42,835,846,020

-Investment

824,743,162

822,798,162

832,415,744

-Tangibles

44,959,995,830

38,563,891,197

39,878,123,397

-Intangibles

12,722,083

23,599,288

35,890,601

-Others

1,834,066,963

1,984,632,963

2,089,416,278

Total Liabilities

44,678,820,140

38,769,578,742

48,115,705,927

Current Liabilities

36,601,670,062

29,503,785,232

35,052,012,358

Fixed Liabilities

8,077,150,078

9,265,793,510

13,063,693,569

Capital Stock

7,000,000,000

7,000,000,000

7,000,000,000

Capital Surplus

12,067,520,994

12,067,520,994

12,067,520,994

Profit Surplus

65,666,801,925

58,038,336,354

46,308,270,658

Capital Adjustment

- 

- 

- 

Total Equity

84,734,322,919

77,105,857,348

65,375,791,652

Liab. & Shareholder’s Equity

129,413,143,059

115,875,436,090

113,491,497,579

 

Current Liabilities

36,601,670,062

29,503,785,232

35,052,012,358

Trade Payables

29,068,333,155

22,404,669,325

16,382,013,310

Short-Term Borrowings

2,373,716,000

1,084,786,000

13,092,736,000

Account Payables

1,812,103,668

2,169,403,392

2,060,368,439

Advance Receipts-Construction

106,174,692

313,780,811

-

Advance Receipts

77,414,023

31,844,292

44,202,400

Withholdings

93,353,016

113,482,717

90,349,977

Accrued Expenses

714,703,078

970,161,779

1,348,601,903

Accrued Income Tax

852,261,070

1,867,936,676

1,571,724,346

Current Portion of Long-Term Debts

1,503,611,360

547,720,240

459,856,600

Short-Term Provisions

- 

- 

2,159,383

Fixed Liabilities

8,077,150,078

9,265,793,510

13,063,693,569

Long-Term Borrowings

4,601,999,680

6,029,611,040

10,797,481,280

Provision for Severance & Retirement

7,326,836,777

6,487,348,911

5,993,026,012

Guarantee Deposit Withhold

184,100,000

185,172,490

157,172,490

Long-Term Account Payables

164,050,000

-

- 

Provision for Severance & Retirement

1,090,087,504

881,333,382

-

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

193,049,102,357

165,367,237,583

182,669,222,525

Cost of Sold Goods

172,929,611,623

139,115,172,386

164,920,440,768

Gross Profit

20,119,490,734

26,252,065,197

17,748,781,757

Selling & Admin. Expenses

9,505,713,456

9,292,631,856

9,529,745,301

Operating Income

10,613,777,278

16,959,433,341

8,219,036,456

Non-Operating Income

1,024,392,661

1,093,726,121

2,191,399,343

Non-Operating Expenses

892,309,319

1,644,752,576

2,884,326,075

Income Before Taxes

10,745,860,620

16,408,406,886

7,526,109,724

Income Taxes Expenses

2,067,395,049

3,838,341,190

1,970,630,299

Net Income

8,678,465,571

12,570,065,696

5,555,479,425

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

12,175,962,683

19,907,891,205

2,175,299,850

-Net Income

8,678,465,571

12,570,065,696

5,555,479,425

-Exp. without Cash Outflow

7,244,845,333

5,950,697,330

6,659,827,506

-Revenue without Cash Inflows

-61,055,555

-16,659,460

-287,288,630

-Changes in Asset/ & Liability

-3,686,292,666

1,403,787,639

-9,752,718,451

Cash Flows from Investing

-11,430,462,852

-3,112,618,839

-5,450,370,254

-Cash Inflow from Investing

650,581,636

485,764,407

1,661,634,694

-Cash Outflows for Investing

-12,081,044,488

-3,598,383,246

-7,112,004,948

Cash Flows from Financing

-29,249,353

-17,499,956,600

4,471,518,920

-Cash Inflows from Financing

1,493,543,377

12,229,186,000

166,383,307,031

-Cash Outflows from Financing

-1,522,792,730

-29,729,142,600

-161,911,788,111

Increase/Decrease in Cash

716,250,478

-704,684,234

1,196,448,516

Cash at the Beginning of Year

1,375,350,988

2,080,035,222

883,586,706

Cash at the End of Year

2,091,601,466

1,375,350,988

2,080,035,222

 

 

Products, Technologies, Services Description

 

Main Products & Services

Phenolic Resins, Polyurethane Resins, Acryl Resins, Silicone Balance, Painters Work

 

Trade Partners & Competitors

 

Competitors

KPX CHEMICAL CO., LTD.

190-3, CHUNGJEONGRO 2-GA SEODAEMUN-GU SEOUL, 120-012 SOUTH KOREA

TEL:+82-2-3616500 FAX:+82-2-3635600

 

DONGSUNG CHEMICAL CO., LTD.

472, SHINPYONG-DONG SAHA-GU BUSAN, 604-836 SOUTH KOREA

TEL:+82-51-2004500 FAX:+82-51-2045636

 

M&FC CO., LTD

376-11, SEOGYO-DONG MAHPO-GU SEOUL, 121-839 SOUTH KOREA

TEL:+82-2-3257050 FAX:+82-2-3253885

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

KUNSUL CHEMICAL INDUSTRIAL CO., LTD.(180111-0003391)

KANG NAM CORPORATION(180111-0054667)

KANG NAM GUNYOUNG CO., LTD.(110111-0328412)

KDK AUTOMATIC COATINGS CO., LTD (110111-0601701)

KPI CO., LTD.(180111-0044535)

KANGNAM ITEC CO., LTD.(110111-2062349 )

BO KWANG CORPORATION(181211-0000419)

CHUNGSAN BIOTECH CO., LTD.(110111-1033961 )

P&S CO., LTD.(KOREA)

Overseas Office

KANG NAM CHEMICAL BEIJING MATERIALS CO., LTD.(CHINA)

Corporate Ownership

DIC CO., LTD.(JAPAN)

Major Shareholders

DIC CO., LTD.(JAPAN)

Cooperative Enterprise

-Technical support from

DIC CO., LTD.(JAPAN)

 

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

 

 

Sales by Region

 (Activity & Markets)

 

The Subject deals with the companies in China, Japan, Philippines and Vietnam.

 

 

Court Action

 

No.

 

 

News Clipping

 

----


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.12

UK Pound

1

Rs.79.37

Euro

1

Rs.66.02

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.